A Welcome Mat for Shareholders
Even though most survey respondents anticipate an increase in shareholder suits, they seem to like the idea of more active investors and are prepared to meet them more than halfway.
More Jaw
Should shareholders be able to talk to the board at any time?
Yes 58%
No 35%
Should major shareholders meet with board members at specially scheduled meetings?
Yes 50%
No 37%
Should all shareholders be able to ask the board questions at the annual meeting?
Yes 82%
No 16%
Two big questions, two big answers...
Should directors answer shareholder questions at the annual meeting?
Yes 56%
No 35%
Would you be prepared to answer if a shareholder asked what you think of the company strategy?
Yes 92%
No 8%
...and a big “Don’t know”
What will happen if shareholder-nominated directors are elected?
Hard to predict 69%
Just over 8% of those surveyed say boards will embrace new members nominated by shareholders. But while 1% think the board will perform more effectively, 7% expect that the new members will make no difference.
Uncle Sam is Here to Stay
For good or bad—okay, mainly for bad, most respondents agree—the government as boardroom-player-cum-active-investor will be around for a foreseeable spell.
Regulation will rise...
Do you think there will be a big increase in regulation?
Yes 91%
No 2%
Of that 91%, 54% “strongly agree” with the premise that there’ll be more regulation, 37% “agree.”
...and spread.
Do you think other companies will have to adopt rules that the government has imposed on those receiving financial help?
Yes 54%
No 20%
Nearly 45% of the respondents say no amount of government control, whether more or less than what we got, could have prevented the severity of the economic crisis.
No to Uncle Sam as paymaster
Respondents are against the feds’ having a say in setting executive pay.
Are government limits on executive compensation justified?
No 88%
Should the government impose further limitations on pay?
No 97%
Should comp be left to the board?
Yes 76%
On the other hand
Will limits on executive comp make it difficult to recruit the best leaders?
No 65%
Continued...